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To: stock talk who wrote (795)	12/24/1997 1:34:00 PM
From: george	Read Replies (1) \| Respond to of 1894

Stock Talk, My only other explanation for the drop is that it might be due to investors who got warrants at 50 cents , bought the stock and now are frightened and want to lock in their profits.....I am not sure that this is valid but throw it out for any to comment on. George

To: stock talk who wrote (795)	12/26/1997 9:56:00 AM
From: Frank Buck	Read Replies (1) \| Respond to of 1894

stock talk, Marcus Robins, CFA and editor-in-chief of The Red Chip Review, recently wrote this article which appeared in January/Frebruary of "Bloomberg Personal". "Nothing as reassuring as a straight line (or even a gentle slope) ever seems to find its way onto the charts of small or micro-cap stocks as they buck and twist their way to fortune or disaster. Ironically, the small companies with the richest futures always seem to subject investors to the scariest moments just before making their most profitable run for the gold. The faint of heart jump for their lives and, sad to say, miss out on the biggest gains. The real broncobusters, though, know to hang on when a frisky stock shows its stuff. They just keep in mind three small-cap truths: Growth is lumpy; beyond a certain size, a company can choke; and turnarounds take time. First, growth for small companies is always lumpy. Corporate value is determined by a combination of current interest rates and earnings prospects. Investors are attracted to small-and micro-cap stocks because they grow much faster than the economy and, normally, faster than the bigger, better-known blue chips. What novice investors and old pros alike often forget is that a tiny change in the top line will affect a small company more drastically than it does a big one. And the costs of a new marketing thrust or manufacturing process-either of which may ultimately benefit earnings-will show up as a ripple in a blue chip's quarterly report but can swamp a small company's income statement. That leads to lumpiness. Second the management team that grows a company to the mid-$20-million level in sales often can't lead it beyond that point. The founders may not be able to get past "the way we did it in the basement," or their egos may swell so much they crowd out common sense. Either way, the company's growth stops in its tracks. Third, a turnaround always takes longer than anyone anticipates. The good news is that the size of the rebound is often proportional to the difficulty and duration of the repairs. All this is not to say that every small company will necessarily come through its rough ride ready to run. The maturing process is always tough, and it can end up destroying a company if management is paralyzed by its operating problems and unerved by the braying of short-term traders. But if you can stick with a good small cap as it lunges and spins, the rewards are often well worth it." The general outlook for 1998 is brighter then any point we've experienced so far. Watch for positive earnings about the third quarter. The benefits of (the rocky road long-term investors have experienced) the past year should give way to an appreciable increase in awareness of this companies struggle to emerge as a market innovator in a newly emerging fied. Hope this answers your question. Frank